Encouraging Phase II Trial Data Supported Zenas BioPharma (ZBIO) in Q4

Core Insights - The Meridian Small Cap Growth Fund reported a 0.90% net return in Q4 2025, underperforming the Russell 2000 Growth Index, which returned 1.22% [1] - Small caps achieved an annual return of 12.8% with a 2.2% gain in Q4 2025, indicating a positive overall market performance despite some cooling in sentiment [1] Company Highlights - Zenas BioPharma, Inc. (NASDAQ:ZBIO) is a clinical-stage biopharmaceutical company focused on autoimmune diseases, with its lead drug Obexelimab in Phase 3 trials, potentially launching in 2027 [3] - Zenas BioPharma's stock saw a one-month return of 30.78% and a remarkable 241.61% increase over the past 52 weeks, closing at $26.68 per share with a market cap of $1.432 billion on February 18, 2026 [2][3] - The company has the potential for annual revenues exceeding $1 billion, contingent on successful drug development and regulatory approval [3] Investment Sentiment - Zenas BioPharma is not among the top 30 most popular stocks among hedge funds, with 13 hedge fund portfolios holding its shares at the end of Q3 2025, unchanged from the previous quarter [4] - While Zenas BioPharma is recognized for its potential, the company is viewed as having less upside compared to certain AI stocks, which are considered to carry less downside risk [4]